"…[R]egrettably, TPG have informed us hey will not pursue a potential investment in Sri Lankan Airlines," Chairman Ajit Dias told staff in a memorandum seen by EconomyNext.

"It is their opinion that allocating the human and financial resources to make the airline profitable will not realize sufficient returns, compared to the many other new investment opportunities that are available to them."

Dias told staff that the Sri Lanka government is "pursuing other options in finding a partner" and staff to make efforts to improve performance.